For the third consecutive time, the Ghanaian government has exceeded its Treasury bill (T-bill) target, raising GHS 8.8 billion against an initial target of GHS 6.3 billion. The latest auction results from the Bank of Ghana indicate a 39.14% oversubscription, highlighting sustained investor interest in the money market.
The 91-day T-bill drew the most attention, with GHS 5.64 billion in bids received out of GHS 5.68 billion tendered. Similarly, the 182-day bill attracted GHS 1.30 billion in bids, narrowly missing the total offer of GHS 1.31 billion. The 364-day bill saw an impressive performance as well, with all GHS 1.8 billion offered successfully taken up.
Market analysts attribute this surge in demand to rising yields, which currently average between 28% and 30%. The 91-day T-bill yield increased by 8 basis points to 28.42%, while the 182-day bill rose by 1 basis point to 28.97%. The 364-day bill saw the highest jump, gaining 11 basis points to reach 30.29%.
The rejection of some bids in the auction is believed to stem from those that fell outside the yield range set by the Treasury.
Analysts suggest that the strong demand reflects growing investor confidence in Ghana’s economic recovery and a preference to capitalize on the attractive interest rates.
Looking ahead, the government plans to raise GHS 8.07 billion in the next T-bill auction, signaling continued reliance on the domestic money market to meet financing needs. This performance underscores the crucial role of T-bills in sustaining Ghana’s fiscal operations amid evolving economic challenges.